The Bank of England kept its benchmark lending rate at its highest levels in 15 years, and Governor Andrew Bailey said it was "too early" to consider a rate cut.
The Central Bank's Monetary Policy Committee voted by a majority of 6 votes in favor of keeping the key interest rate at 5.25%, compared to 3 members who called for another quarter-point increase to stifle what they saw as continued upward pressure on prices, according to the minutes of the decision issued on Thursday.
Bailey and his fellow monetary policymakers agreed that a “restrained stance for an extended period of time” would be needed to limit Britain’s inflation rate, which remains at three times its target and the highest in the G7. These statements appear to raise doubts about investors' expectations that the Bank of England may cut interest rates in the second half of 2024, at a time when Prime Minister Rishi Sunak is expected to prepare for a general election.
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